House Concurrent Resolution 4

A CONCURRENT RESOLUTION URGING CONGRESS TO EASE CERTAIN REQUIREMENTS OF THE BANK SECRECY ACT IN ORDER TO RELIEVE SOME OF THE BURDENS OF THAT ACT ON BANKS AND POTENTIAL CUSTOMERS AFFECTED BY HURRICANE KATRINA, AND URGING CONGRESS TO IMMEDIATELY CONSIDER THE REGULATORY BURDEN REDUCTION BILL AND CONSIDER ALL OTHER BILLS THAT WOULD GIVE THE FINANCIAL SERVICES INDUSTRIES THE ASSURANCES THEY WILL NEED IN ORDER TO PROVIDE BASIC BANKING FUNCTIONS AT THIS TIME WITHOUT LIABILITY.

WHEREAS, on August 29, 2005, Hurricane Katrina crashed into the Mississippi Gulf Coast with massive force, causing substantial damage and destruction throughout most of the southern counties of the state; and

WHEREAS, the effects of the damage from this devastating hurricane are deep and wide-ranging, and one of the industries that is experiencing the impact in a number of critical ways is the banking industry; and

WHEREAS, many banks are faced with an extraordinary amount of large cash transactions in the aftermath of Hurricane Katrina as the recovery effort continues, and the requirement of the federal Bank Secrecy Act (BSA) to file Currency Transaction Reports in all instances is burdensome and hinders the ability of the banks to service their customers during this difficult time; and

WHEREAS, other provisions of the Bank Secrecy Act address the pertinent information required in order to open an account, but many displaced potential customers do not have all of the required information, so financial institutions should be allowed to open accounts for these customers without the fear of violating the BSA requirements; and

WHEREAS, there are several bills pending or to be introduced in Congress that would help the financial services industries better and more efficiently provide services to their customers, especially during this period of recovery from the effects of Hurricane Katrina:

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF MISSISSIPPI, THE SENATE CONCURRING THEREIN, That the Legislature urges the United States Congress to ease certain requirements of the Bank Secrecy Act regarding the filing of Currency Transaction Reports and the information required in order to open an account, in order to relieve some of the burdens of the BSA on banks and potential customers affected by Hurricane Katrina.

BE IT FURTHER RESOLVED, That the Legislature urges Congress to immediately consider the Regulatory Burden Reduction bill, which will ultimately place the state banking system back in a competitive position with the federal system, and will help state financial institutions branch and engage in trust activities across state lines to the same extent that institutions chartered by the Office of Thrift Supervision and the Office of the Comptroller of the Currency are able to do.

BE IT FURTHER RESOLVED, That the Legislature urges Congress to immediately consider all bills that would give the financial services industries the assurances they will need in order to provide basic banking functions at this time without being subject to any liability.

BE IT FURTHER RESOLVED, That copies of this resolution be furnished to the Commissioner of Banking and Consumer Finance, each member of the Mississippi Congressional Delegation and members of the Capitol Press Corps.